RedRabidRabbit
I want FREE HAM!!
- Location
- Vancouver
The question people need to ask themselves is not how the Cndn dollar compares with the dropping US dollar, but how our dollar compares to the Euro and the Peso. Our cars are built in Mexico (Golf, Jetta City, Beetle), Brazil (MKV Jetta) and Germany (GTI, Rabbit, Passat). How does the dropping US dollar affect how the Cndn dollar compares to the euro or the peso? It doesn't. We have no cars built in the US so their dropping dollar won't directly affect us. Auto Analyst Dennis DesRosiers said that, "The correst price for a vehicle is what the consumer will pay for it in Canada, not what a consumer will pay in another country." Record sales of new cars in Canada is proof that new cars in Canada are not overpriced. The reason that Porsche has dropped prices is because the have the margin to do so! VW doesn't. There's an average of $1100 markup on a Rabbit or City model. Not a lot when the average markup on a Ford/GM pickup is $15,000!!! Buyers interest in importing a car to Canada needs to pay RIV fees (Registrar of Imported Vehicles) $195 plus tax. Plus the cost of any modifications necessary, such as adding daytime running lights, 8km/h bumpers and a child tether anchor.
I touched on this in my post, and the US dollar has fallen in relation to the Euro, so I guess the point is the prices should be going up in the US, not down in Canada (not that I don't want them to).